Markets are no longer reacting to a single geopolitical shock. They are attempting to price how that shock propagates through energy systems, financial conditions, and increasingly, the functioning of markets themselves.

What began as a disruption to energy flows is now transmitting through inflation expectations, bond markets, liquidity conditions, and cross-asset relationships. Importantly, the adjustment is not occurring in a linear way. Equity markets have begun to correct, with major indices such as the NASDAQ and Dow entering correction territory, yet the broader...